Exhibit R-2, RDT&E Budget Item Justification: PB 2013 Air Force DATE: February 2012 COST ($ in Millions) FY 2011 FY 2014 FY 2015 FY 2016 FY 2017 To Program Element 65.844 127.925 21.000-21.000 8.000 - - - Continuing Continuing 675372: Integrated Sensor IS Structure - 45.925 21.000-21.000 8.000 - - - Continuing Continuing 676019: Blue Devil 65.844 63.000 - - - - - - - Continuing Continuing 67A026: MAGIC - 19.000 - - - - - - - Continuing Continuing Note FY11 funding includes $65.844M for Overseas Contingency Operations. FY12 funding includes $63.0M for Overseas Contingency Operations. FY13 funding totals do not currently include $29.7M requested for Overseas Contingency Operations. The to and for MDAP projects in this program element are documented in the R3. The to and on the R2 are entered as "Continuing" and not reflective of the total cost for MDAP projects since the R2 does not account for prior years funding. A. Mission Description and Budget Item Justification This PE focuses USAF efforts on long endurance platforms which allow days, months, or years of endurance, as well as their associated sensors and communications suites. Efforts include, but are not limited to, airships and more standard aircraft structures. The Integrated Sensor IS Structure (ISIS) project develops a radar which is fully integrated into a station-keeping, stratospheric airship. ISIS supports the nation's need for persistent wide-area surveillance, tracking, and engagement of time-critical air and ground targets. Automated surveillance and tracking includes air targets to the radar horizon of 600 km and all ground targets to a range of 300 km. The radar aperture is intended to provide track data and other communications directly to users in-theater. The system is planned to launch from CONUS locations with a multi-year operational life. No support personnel or facilities are required in-theater. Efforts include work on the ground station and the corresponding Processing, Exploitation, and Dissemination (PED) connectivity. The Blue Devil Block 2 (BD2) project is an Air Force-led single ship technology and concept demonstration of multi-intelligence, cross-platform tipping and cueing of fused SIGINT, wide area and high-definition (HD) EO/IR motion imagery on a persistent lighter-than-air (LTA) airship. BD2 will employ a payload integration infrastructure (PII) with a Command and Control (C2) and Processing, Exploitation, and Dissemination (PED) Ground Station. This effort directly supports multiple validated CENTCOM urgent operational needs, and contributes directly to force protection and counter Improvised Explosive Device (IED) missions for Coalition Forces. Air Force Page 1 of 19 R-1 Line #206
Exhibit R-2, RDT&E Budget Item Justification: PB 2013 Air Force DATE: February 2012 The Medium Altitude Global ISR and Communications (MAGIC) project develops a multiple day, medium altitude ISR unmmanned aerial system (UAS) to provide long endurance surveillance with a multiple sensor payload. Funds also cover activities to include studies and analysis to support both current program planning and execution and future program planning. This program is in Budget Activity 7, Operational System Development because this budget activity includes development efforts to upgrade systems that have been fielded or have received approval for full rate production and anticipate production funding in the current or subsequent fiscal year. B. Program Change Summary ($ in Millions) FY 2011 Previous President's Budget 56.000 52.425 20.907-20.907 Current President's Budget 65.844 127.925 21.000-21.000 Adjustments 9.844 75.500 0.093-0.093 Congressional General Reductions - - Congressional Directed Reductions - -16.500 Congressional Rescissions - - Congressional Adds - 19.000 Congressional Directed Transfers - - Reprogrammings - - SBIR/STTR Transfer - - Other Adjustments 9.844 73.000 0.093-0.093 Change Summary Explanation FY11 increase of $9.844M provided by ISR Task Force and JIEDDO to accelerate purchase of an ARGUS camera system for Blue Devil 2 sensor suite. FY12 funding reflects the following actions: - Congressional Directed Reduction of $6.5M to Project 675372, ISIS (Previous President's Budget Figure) - request of $73M to Project 676019, Blue Devil 2, less $10M Congressional Directed Reduction - Congressional add of $19M to Project 67A026, MAGIC Air Force Page 2 of 19 R-1 Line #206
Exhibit R-2A, RDT&E Project Justification: PB 2013 Air Force DATE: February 2012 COST ($ in Millions) 675372: Integrated Sensor IS Structure FY 2011 675372: Integrated Sensor IS Structure FY 2014 FY 2015 FY 2016 FY 2017 To - 45.925 21.000-21.000 8.000 - - - Continuing Continuing Quantity of RDT&E Articles 0 0 0 0 0 0 0 0 0 A. Mission Description and Budget Item Justification The Integrated Sensor IS Structure (ISIS) Program develops a radar fully integrated into a station-keeping stratospheric airship. ISIS supports the nation's need for persistent wide-area surveillance, tracking, and engagement of time-critical air and ground targets. Automated surveillance and tracking includes air targets to the radar horizon of 600 km and all ground targets to a range of 300 km. The radar aperture also is intended to provide track data and other communications directly to users in-theater. The system is planned to launch from CONUS locations with a multi-year operational life. No support personnel or facilities are required in-theater. Efforts include work on the ground station and the corresponding Processing, Exploitation, and Dissemination (PED) connectivity. DARPA funded development of the prototype in FY11-12. Air Force will contribute funding in FY12-FY14 to this joint DARPA - Air Force project to complete and demonstrate the prototype. This project includes completion of the designs for the radar, propulsion, power systems, and the airframe. The project also includes development and testing of the hull materials, antenna design/production, calibration system design, software development for the radar and flight control systems, and integration of the radar into the hull structure. This system will demonstrate capability in FY14. Funds also cover studies and analysis to support current program planning and execution and future program planning. This program is in Budget Activity 7, Operational System Development because this budget activity includes development efforts to upgrade systems that have been fielded or have received approval for full rate production and anticipate production funding in the current or subsequent fiscal year. B. Accomplishments/Planned Programs ($ in Millions) Title: ISIS Description: Design, develop, and demonstrate a radar integrated into a station-keeping airship. FY 2011-45.925 21.000-21.000 FY 2011 Accomplishments: N/A Plans: Fabricate prototype design; test initial radar performance; begin preparations for initial flight review. Plans: Air Force Page 3 of 19 R-1 Line #206
Exhibit R-2A, RDT&E Project Justification: PB 2013 Air Force DATE: February 2012 B. Accomplishments/Planned Programs ($ in Millions) Will complete radar fabrication; continue integrating radar into airship structure. Will begin integration testing and preparation for demo in FY14. 675372: Integrated Sensor IS Structure FY 2011 Accomplishments/Planned Programs Subtotals - 45.925 21.000-21.000 C. Other Program Funding Summary ($ in Millions) Line Item FY 2011 FY 2014 FY 2015 FY 2016 FY 2017 To RDT&E, DARPA, PE 21.500 5.000 5.000 0.000 5.000 0.000 0.000 0.000 0.000 0.000 267.900 0603283E,...: N/A RDT&E, AF, PE 0603203F, Adva...: N/A (1) 0.000 3.400 5.000 0.000 5.000 4.000 0.000 0.000 0.000 0.000 12.400 D. Acquisition Strategy This is a -Plus-Fixed-Fee contract with a total value of $462M. The project is being funded with a cost sharing agreement between the Air Force and DARPA under a Memorandum of Agreement. Air Force funds intended for the contract are being provided to DARPA via a Military Interdepartmental Purchase Request (MIPR) for obligation. The Air Force Research Laboratory is acting as the ing Officer's Technical Representative for DARPA. The prime contractor is Lockheed Martin Aeronautics of Palmdale, CA and the radar sub is Raytheon Space and Airborne Systems, El Segundo, CA. E. Performance Metrics Please refer to the Performance Budget Overview Book for information on how Air Force resources are applied and how those resources are contributing to Air Force performance goals and most importantly, how they contribute to our mission. Air Force Page 4 of 19 R-1 Line #206
Exhibit R-3, RDT&E Project Analysis: PB 2013 Air Force DATE: February 2012 Product Development ($ in Millions) Category Item Prototype Development C/CPFF Lockheed Martin:Palmdale, CA Prior 675372: Integrated Sensor IS Structure To 113.533 45.925 Nov 2011 21.000-21.000 8.000 188.458 462.000 Subtotal 113.533 45.925 21.000-21.000 8.000 188.458 462.000 Support ($ in Millions) Category Item Prior To Subtotal - - - - - 0.000 0.000 0.000 Test and Evaluation ($ in Millions) Category Item Prior To Subtotal - - - - - 0.000 0.000 0.000 Management Services ($ in Millions) Remarks Category Item Prior To Subtotal - - - - - 0.000 0.000 0.000 Prior To Project s 113.533 45.925 21.000-21.000 8.000 188.458 462.000 Air Force Page 5 of 19 R-1 Line #206
Exhibit R-4, RDT&E Schedule Profile: PB 2013 Air Force DATE: February 2012 675372: Integrated Sensor IS Structure Air Force Page 6 of 19 R-1 Line #206
Exhibit R-4A, RDT&E Schedule Details: PB 2013 Air Force DATE: February 2012 Schedule Details 675372: Integrated Sensor IS Structure Start End Events Quarter Year Quarter Year Prototype Design 1 2011 3 2011 Development 1 2011 2 2014 Demonstration 2 2014 2 2015 Air Force Page 7 of 19 R-1 Line #206
Exhibit R-2A, RDT&E Project Justification: PB 2013 Air Force DATE: February 2012 COST ($ in Millions) FY 2011 676019: Blue Devil FY 2014 FY 2015 FY 2016 FY 2017 To 676019: Blue Devil 65.844 63.000 - - - - - - - Continuing Continuing Quantity of RDT&E Articles 0 0 0 0 0 0 0 0 0 Note FY 2011 funding totals include $65.844M appropriated for Overseas Contingency Operations. funding totals include $63.0M requested for Overseas Contingency Operations. funding totals do not currently include $29.7M requested for Overseas Contingency Operations. A. Mission Description and Budget Item Justification The Blue Devil Block 2 (BD2) system is an Air Force led single ship technology and concept demonstation of multiple intelligence sensors, cross-platform tipping and cueing of fused SIGINT data, wide area and high-definition (HD) EO/IR motion imagery on a persistent lighter-than-air (LTA) airship. BD2 is being developed to employ a payload integration infrastructure (PII) with a Command and Control (C2) and Processing, Exploitation, and Dissemination (PED) Ground Station. This effort directly supports multiple validated CENTCOM urgent operational needs, and contributes directly to force protection and counter Improvised Explosive Device (IED) missions for coalition Forces. BD2 is a rapid acquisition technology demonstration that started in FY 2010. The Blue Devil Block 2 initiative is supported by the Joint Improvised Explosive Device Defeat Organization (JIEDDO) and monitored intently as a program of interest by OSD's ISR Task Force. JIEDDO in coordination with the ISR Task Force provide $9.844M in FY11 to accelerated the procurement of the ARGUS IS Electro- Optical/Infra-Red (EO/IR) camera system. A $10.0M reduction in FY12 funding paid for the accelerated purchase of the ARGUS EO/IR sensor with FY11 funding. Funds also cover studies and analysis to support current program planning and execution and future program planning. This program is in Budget Activity 7, Operational System Development because this budget activity includes development efforts to upgrade systems that have been fielded or have received approval for full rate production and anticipate production funding in the current or subsequent fiscal year. B. Accomplishments/Planned Programs ($ in Millions) Title: Blue Devil 2 Description: Develop and rapidly field an integrated multi-intelligence system on a persistant lighter-thanair airship with organic tipping and cueing of fused SIGINT to on-board wide field of view and narrow field of FY 2011 65.844 63.000 - - - Air Force Page 8 of 19 R-1 Line #206
Exhibit R-2A, RDT&E Project Justification: PB 2013 Air Force DATE: February 2012 676019: Blue Devil B. Accomplishments/Planned Programs ($ in Millions) view EO/IR motion imagery systems. Procurement of the ARGUS IS Electro-Optical/Infra-Red (EO/IR) camera system for enhanced high resolution imagery. FY 2011 FY 2011 Accomplishments: Continue development, integration, and test of the Blue Devil 2 system. Some FY 2011 funding was used to purchase long lead spares and begin preparations for the deployment to theater for the operational demonstration. Plans: development, integration and test of the Blue Devil 2 system. Continue preparations for transport and deployment to the CENTCOM theater of operations for the operational demonstration of this long endurance capability. Plans: funding - see FY13 Effort Description. Plans: If funded, will support continued Blue Devil 2 demonstration in theater and document lessons learned. Accomplishments/Planned Programs Subtotals 65.844 63.000 - - - C. Other Program Funding Summary ($ in Millions) Line Item FY 2011 FY 2014 FY 2015 FY 2016 FY 2017 To RDT&E AF, PE 0305206F, Airbo...: JIEDDO 29.300 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Continuing Continuing D. Acquisition Strategy The Blue Devil Block 2 (BD2) initiative is being executed by the 645 AESG (BIG SAFARI) to field this CM requested, SECDEF mandated, long endurance quick reaction capability to address CM urgent operational needs. BD2 will be executed as a rapid acquisition program in order to field the capability as quickly as possible. E. Performance Metrics Please refer to the Performance Budget Overview Book for information on how Air Force resources are applied and how those resources are contributing to Air Force performance goals and most importantly, how they contribute to our mission. Air Force Page 9 of 19 R-1 Line #206
Exhibit R-3, RDT&E Project Analysis: PB 2013 Air Force DATE: February 2012 Product Development ($ in Millions) Category Item Prior 676019: Blue Devil To Airship Development SS/CPFF MAV-6:Vicksburg, MS 84.780 6.000 Nov 2011 - - - 0.000 90.780 0.000 ARGUS EO Sensor Development Sensors, Datalinks, GFE Integration Sensor Integration and Test Support Operational Demonstration Support SS/FFP BAE:Nashua, NH 18.844 - - - - 0.000 18.844 0.000 C/FFP Various:Location not provided. 28.330 - - - - 0.000 28.330 0.000 TBD L-3Com:Greenville, TX 10.400 7.500 Nov 2011 - - - 0.000 17.900 0.000 C/CPAF Various:, 11.600 46.500 Nov 2011 - - - 0.000 58.100 0.000 Subtotal 153.954 60.000 - - - 0.000 213.954 0.000 Support ($ in Millions) Category Item Prior To Subtotal - - - - - 0.000 0.000 0.000 Test and Evaluation ($ in Millions) Category Item Prior To Subtotal - - - - - 0.000 0.000 0.000 Management Services ($ in Millions) Category Item Prior To PMA TBD 645 AESG:Dayton, OH 3.340 3.000 - - - 0.000 6.340 0.000 Subtotal 3.340 3.000 - - - 0.000 6.340 0.000 Air Force Page 10 of 19 R-1 Line #206
Exhibit R-3, RDT&E Project Analysis: PB 2013 Air Force DATE: February 2012 Remarks Prior 676019: Blue Devil To Project s 157.294 63.000 - - - 0.000 220.294 0.000 Air Force Page 11 of 19 R-1 Line #206
Exhibit R-4, RDT&E Schedule Profile: PB 2013 Air Force DATE: February 2012 676019: Blue Devil Air Force Page 12 of 19 R-1 Line #206
Exhibit R-4A, RDT&E Schedule Details: PB 2013 Air Force DATE: February 2012 Schedule Details 676019: Blue Devil Start End Events Quarter Year Quarter Year Increment 1 - Airship Design 1 2011 1 2012 Increment 1 - Integration and Test 2 2011 3 2012 Increment 2 - ARGUS EO Development 3 2011 1 2012 Increment 2 - ARGUS EO Integration and Test 1 2012 3 2012 Operational Demo 3 2012 4 2013 Air Force Page 13 of 19 R-1 Line #206
Exhibit R-2A, RDT&E Project Justification: PB 2013 Air Force DATE: February 2012 COST ($ in Millions) FY 2011 67A026: MAGIC FY 2014 FY 2015 FY 2016 FY 2017 To 67A026: MAGIC - 19.000 - - - - - - - Continuing Continuing Quantity of RDT&E Articles 0 0 0 0 0 0 0 0 0 Note In FY 2011, $8M was reprogrammed to conduct MAGIC efforts. A. Mission Description and Budget Item Justification The Medium Altitude Global ISR and Communications (MAGIC) project is an Air Force led technology and concept development to test the ability for medium altitude remotely piloted aircraft (RPA) to stay aloft for a five-day duration with a minimum of 1,000 pounds payload capacity of multiple intelligence, surveillance and reconnaissance sensors. The MAGIC project concept was initiated in 2010 by five CMs ranking this initiative as the highest priority joint concept and tecnology demonstration (JCTD) but the with the Air Force accepting this initiative it is no longer under consideration as a JCTD. Data gathered from the MAGIC project will support end-to-end long endurance ISR planning. Persistent ISR supports both regular and irregular warfare. The challenge to supporting regular and irregular warfare is the integration of legacy ISR architectures with emerging end-to-end infrastructures. The MAGIC project will provide the USAF with critically needed data regarding sensor and aircraft performance parameters at a five-day duration flight. This data will augment the Persistent ISR study completed by ACC and AFMC in March 2011. This project is designed to meet the requirement of two joint urgent operational needs for long dwell and persistent ISR. The objectives of the MAGIC project is to fly an RPA for a duration of five days with a minimum sensor payload of 1,000 pounds at 20,000 feet. In FY10, OSD/DDR&E (now ASD/R&E) provided $5M to AFRL for initial funding of the MAGIC project. In FY11, DDR&E provided an additional $5M to keep the project moving forward. The Air Force followed suit and provided $3M of end of year FY11 below threshold reprogramming (BTR) to allow the Aurora Flight Sciences development team to set up for an operational five-day running engine bench test in preparation for an inflight five-day duration flight test of the Orion RPA at a later date. The five-day duration running engine bench test is projected to occur in late January or early February 2012. B. Accomplishments/Planned Programs ($ in Millions) Title: MAGIC Description: Development of a SIL facility for aircraft controls and fault tolerance maturation through modeling and simulation tools, and continuation of endurance studies to identify mean time between failures on key airframe and flight control components, sensor system components, and communication data links in preparation for the integration of components in the development of a long duration, ISR sensor carrying Remotely Piloted Aircraft with the capacity to stay aloft for five days with a minimum of 1,000 pounds of sensor payload in a flight structure at or above 20,000 feet. FY 2011-19.000 - - - Air Force Page 14 of 19 R-1 Line #206
Exhibit R-2A, RDT&E Project Justification: PB 2013 Air Force DATE: February 2012 B. Accomplishments/Planned Programs ($ in Millions) FY 2011 Accomplishments: Begin design and development of airframe components such as landing gear and hydraulic breaks, propeller pitch determination, actuator testing to mitigate latent defects, software development for avionic system functionality, and Li-ION battery development to meet performance specifications in the in the development of a long duration, ISR sensor carrying Remotely Piloted Aircraft with the capacity to stay aloft for five days with a minimum of 1,000 pounds of sensor payload in a flight structure at or above 20,000 feet. Plans: Continued development of avionics and flight controls software, sensor systems and data links, and airframe and power plant components that will enable the ground and flight testing of a long duration, ISR sensor carrying Remotely Piloted Aircraft with the capacity to stay aloft for five days with a minimum of 1,000 pounds of sensor payload in a flight structure at or above 20,000 feet. 67A026: MAGIC FY 2011 Accomplishments/Planned Programs Subtotals - 19.000 - - - C. Other Program Funding Summary ($ in Millions) Line Item FY 2011 FY 2014 FY 2015 FY 2016 FY 2017 To RDT&E, PE 0305205F, Enduranc...: MAGIC MIPR/BTR 8.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Continuing Continuing D. Acquisition Strategy Current funding availability provides for the studies and bench testing of select avionics, flight controls, and engine components. If and when additional funding is sourced, a five day duration flight test could be accomplished within 9 to 12 months after receipt of funds. If the five day duration flight test is successful, the next acquistion objective is to procure a deployable capability. One orbit of capability is defined as three RPAs, one ground station and the sensor payload provided as government furnished equipment (GFE). E. Performance Metrics Please refer to the Performance Budget Overview Book for information on how Air Force resources are applied and how those resources are contributing to Air Force performance goals and most importantly, how they contribute to our mission. Air Force Page 15 of 19 R-1 Line #206
Exhibit R-3, RDT&E Project Analysis: PB 2013 Air Force DATE: February 2012 Product Development ($ in Millions) Category Item Product Design and Development C/CPAF Not specified.:manassas, VA Prior 67A026: MAGIC To - 19.000 Mar 2012 - - - 0.000 19.000 0.000 Subtotal - 19.000 - - - 0.000 19.000 0.000 Remarks Aurora Flight Sciences, headquartered in Manassas, VA is the prime contractor on the MAGIC project. Aurora's Orion remotely piloted aircraft is the airborne asset being developed and progressed towards the five-day duration flight test with Aurora's Centaur/Diamond DA42 optionally piloted aircraft being used for risk mitigation initiatives prior to Orion's flight testing. Support ($ in Millions) Category Item Prior To Subtotal - - - - - 0.000 0.000 0.000 Test and Evaluation ($ in Millions) Category Item Prior To Subtotal - - - - - 0.000 0.000 0.000 Management Services ($ in Millions) Category Item Prior Remarks 645 AESG (BIG SAFARI SPO) assumed program management of the MAGIC project in May 2011. To Subtotal - - - - - 0.000 0.000 0.000 Air Force Page 16 of 19 R-1 Line #206
Exhibit R-3, RDT&E Project Analysis: PB 2013 Air Force DATE: February 2012 Prior 67A026: MAGIC To Project s - 19.000 - - - 0.000 19.000 0.000 Remarks OSD/DDR&E provided $5M in FY 2010 as a MIPR to AFRL. OSD/DDR&E provided another $5M in FY 2011. An Air Force below threshold reprogramming provided $3M in late FY 2011. Air Force Page 17 of 19 R-1 Line #206
Exhibit R-4, RDT&E Schedule Profile: PB 2013 Air Force DATE: February 2012 67A026: MAGIC Air Force Page 18 of 19 R-1 Line #206
Exhibit R-4A, RDT&E Schedule Details: PB 2013 Air Force DATE: February 2012 Schedule Details 67A026: MAGIC Start End Events Quarter Year Quarter Year Design, Develop, Integrate and Test 1 2012 1 2013 Air Force Page 19 of 19 R-1 Line #206